I have come across an interesting problem when setting up a new account in Thunderbird. The account I was trying to set up was a BT.com account. the password that the client had used contained a #. Whenever I tried to set up the account, it came back "user name or password incorrect". To ascertain that the password was correct I used the BT WebMail portal and it logged on successfully. I also tried Windows Live Mail and that functioned correctly.

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